Turkish financial sector provides nearly TL 500B for SMEs

Published 01.08.2017 22:34
Updated 02.08.2017 00:14

Turkey's financial sector continues to fully support small- and medium-sized enterprises (SMEs) in association with government-backed initiatives and incentive programs that support the economic activity of SMEs, regarded as an important wheel in the country's economic structure.

The total gross loans granted to SMEs by major banks increased 20.2 percent and reached TL 485.7 billion ($137.9 billion) at the end of June compared to the same period last year. Moreover, the Credit Guaranteed Fund (CGF), which provides financial support for Turkey's growth and development by facilitating SMEs' access to financial sources, supported approximately TL 210 billion ($59.6 billion) to such commercial entities.

According to data compiled by the Banking Regulation and Supervision Agency (BDDK), the highest increase in SME loans in June 2017 was realized in loans granted to small-sized enterprises, with the amount of loans allocated to these enterprises increasing by 20.5 percent year-on-year, reaching TL 162.5 billion by the end of June.

In the said period, the highest share among total gross loans was recorded among loans granted to medium-sized enterprises with 39.9 percent. The number of loans borrowed by medium-sized enterprises climbed by 19.8 percent year-on-year to TL 193.7 billion by the end of June.

Loans granted to micro enterprises also rose by 20.4 percent in the same period and stood at TL 130 billion.

The total gross loans granted to SMEs by major banks surged by 20.2 percent year-on-year, reaching TL 485.7 billion by the end of June, while loans granted to SMEs increased by 15.5 percent compared to the end of the previous year.

The amount of non-performing loans held by SMEs stood at TL 23.7 billion as of the end of June, while the ratio of non-performing loans to total gross loans reached 4.9 percent.

CGF-supported loans approach TL 210 billion

Analysts said that the effects of incentive packages provided by government programs earlier this year for facilitating access to real sector financing have been observed in the economy. Analysts pointed out that loans guaranteed by the Credit Guarantee Fund (CGF) made positive contributions to both the real sector and the banking sector. According to data provided by the CGF, more than 310,000 enterprises used CGF-supported loans totaling nearly TL 210 billion by the end of July.

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